tv Real Money With Ali Velshi Al Jazeera November 24, 2014 6:30am-7:01am EST
others and the first female astronaut and nicknamed iss- iss-express so says it uses extra teresstrial and suzanne it flows right in space and i wonder if they do decaf. here is the weather. america stands on the bridge of a new cold war with russia, i journeyed to the front lines in the frozen north with america's allies are locked in a high-stakes stand off over huge deposits of oil and gas. i'll look at how arctic melting unlocked a wealth of opportunity, and fuelled new tensions between old enemies, and i'll talk to a cold war wore yore who has never taken his eye off russia. i'm ali velshi, and this is "real money".
the new cold war, global tensions with russia, from the arctic ocean to the south pacific, i'll take you on a journey illustrating how the west's confrontations with russia spreads beyond ukraine. last week russia's president gangs up. president obama and british prime minister david cameron, both warned of a "frozen conflict" created by russia in eastern ukraine. canada's prime minister stephen harper was blunter telling vladimir putin "you need to get out of ukraine." the relationship with russia has been on edge long before the crisis in ukraine erupted. much is to do with oil. as far as north as the arctic soil russia and world powers are competing for precious natural resources with new urgency.
>> reporter: it's 10:00a.m. on an autumn morning in transylvania. more than 1,000 romanian solders are engaged in war planes, under the guidance of hundreds of u.s. marines. it's a routine n.a.t.o. exercise in military readiness. but demonstrations of force like this have taken on a new urgency for the west. here, beside the carr pathian mountains in romania the soldiers are training for battle. a 7-hour drive from ukraine, where russian-backed separatists set off the worst confrontation between moscow and the west since the end of the cold war. >> romanians and other europeans who remember past aggressions are worried about the wests ability and willingness to stop putin. >> it is a reality. now we live in a new cold war,
but it is a danger for real war. >> reporter: not everyone shares the former romanian's fears that moscow and the west are bound for armed conflict. and yet an escalating military presence left little room for error. in october, n.a.t.o. scrambled dozens of f-16s, when russia launched an unusually large number of combat craft near n.a.t.o. air space. nearly two dozen russian bombers and fighters swooped the north sea, the black sea, the gulf of finland and the baltic sea. it was captured here on never before seen video recently declassified by the norwegian military, showing the new fighter jet, the su 34, which can travel more than 2500 miles, carrying a pay load of 8 tonnes
of precision guided weapons. event like this happened more than 100 times in 2014. three times more than in 2013. >> essentially what it is is the cat and mouse game played during the original cold war, where each side probes the defenses of the other in order to see how they'll react. >> that game is putting more pressure on n.a.t.o. outposts like this air base in buddha where nor weeman forces until -- norwegian force, until recently, neighbours. >> despite good relations, n.a.t.o. uses the command center and f-16s to by eyes and ears in the sky. norway runs the operation from its military headquarters, which it moved 600 miles north to buddha. becoming the only country with a military headquarters inside the arctic circle. a reason for the move - to keep better tabs on russia.
buried deep inside an arctic mountain norwegian officers track incoming russian bombers on monitors, only imaging conjuring up memories of 1950 cold war civil ans and lately that as come back to life. brinksmanship between n.a.t.o. and russia has existed. the crisis in ukraine may have redefined moscow's relation with the west. >> the ukranian crisis pushed the russia-west relationship over the cliff and into something qualitatively different to what we had in the cold war period. >> reporter: in a speech vladimir putin made to russian parliament, he outlined a new figs, moscow would -- vision, moscow would protect what it influence. >> there was a part in which he warned russia's western
colleagues that if you press a spring to the limit, at some point it will spring back hard. that's the new foreign policy of russia, springing back against west. >> in november. former soviet leader mikhail gorbachev weighed in saying the expansion of europe and others has contributed to the lack of truck of russia with the west. >> the world is on the brink of a new cold war. begun. >> reporter: the stakes of the new cold war are about more than territory and influence. they are about money. here on the top of the world, the battle is fought over energy. the arctic is home to 13% of the world's undiscovered oil, and a third of its natural gas. nations lay claim to the fast-melting landscape,
including russia, canada and the united states. they, alongside china are pursuing huge reserves of oil, gas and coal. >> russia's resurgence has been fuelled by hydrocarbons. if they stay powerful, they need arctic. >> in 2007 russia staked a claim to billions of arctic oil and gas deposits. two submarines planted a flag on the russian floor. canada and the u.s. scoffed, comparing it to a 15th century land grab. the move underscores the growing importance of the region. to get a first hand look, i headed north, way north, to the northern most town in the world, on an island in the high arctic. many nation, including russia
are eyeing this once sleeping coal mining settlement as a strategic base in the new arctic frontier. i'm here in norway, we are closer to the north pole than to oslo. this is for polar bears. they generate electricity by burning coal and were looking for a place to put the co2 emissions coming from burning coal, trying to find a reservoir to put it underground and they came upon natural gas. finds like these whet the appetite of prospectors. energy is not the only factor in the battle for the high north, it's about who controls the high seas. which are increasingly accessible because of global warming. shipping lanes created by the melting of the ice could save money, for example, a cargo ship travelling between western europe and asia travels through the suez canal.
doing it through the arctic shortens it by oh%. - 40%. what russia needs is arctic ports and lines of communication. it's a big reason why moscow unveiled an ambitious plan to build 13 new bases and stations in outposts across the arctic . >> it would be lucrative strategically. russia would artery. >> small bar presents a communication hub for russia and other nations that are interested in the high north. >> that's because of the placement that we have with more activity in the polar sea, and we are placed in the center of that. driving down one of its only two roads, it has the look and feel
of an alpine ski resort. it's become a key listening post and research center for activities in the high north, where 59% of the ice has melted away since 1979. melting ice in the arctic. it's an ironic contrast to the freeze in relations between russia and the west. a freeze that is steadily putting old cold war enemies on a path towards a new round of battles, whose end game is less about ideology and more about economic control and financial soup rem si. in just two minutes we'll head to poland with cold war mistrust runs deep and apple farmers are caught at the center of the economic crossfire. you are watching the new called war, a "real money" special report. call me about what is on your find:
russian president vladimir putin is accusing the united states of fermenting the new cold war. the european union is promising trade sanctions if russia does not back off in ukraine. indeed, their interference set off a cold war, and weapons are not limited to war planes or rocket launches, it's the stuff people depend on to live - everything from oil to apples. >> reporter: these polish apple farmers are on the front lines of an economic war raging between russia and the west. sparked by the real war in ukraine, they became a casualties after russia slammed the door on agricultural imports
from the european union. a tit for tat response for sanctions slapped on russia. russia is inflicting pain in this farming community, an hour's drive south of warsaw. orchards for as far as the eye can see grow the famous polish apple. it's delicious. polls love these and so do others. in 2013 poland exported 677,000 tonnes of apples to russia. that is 56% of all its apple exports. that ended on august 1st. there's nobody to buy the apples now. that will cost polish apple growers $659 million this year. for apple growers, the situation is dire. in a typical year, 40% of the apples this man grows are shipped to russia, without russian clients, his livelihood is in jeopardy. >> for sure they are suffering.
you know, our market has panic. >> reporter: that panic over apples is a symbol of bigger fears spreading across a european continent whose economic health was already turning rotten. the conflict over ukraine, and sanctions that followed, dealt europe another blow. nowhere is the fear greater than in germany, whose economy, europe's biggest, is faltering. >> as a result of crisis in ukraine, german exports to russia fell 26% in august compared to a year earlier. >> analysts forecast a recession, as it grapples with the fallout. on the other side of the equation, sanctions are taking a toll on russia's stagnating economy. lower oil prices put the country on the brink of recession. it plunged to lows. the bank of russia projected investors would yank 128 billion
out of economy in 2014, more than double the amount they took out the year before. since sanctions hit, food prices in russia soared. in some cases by as much as 30%. it prompted some russians to stock up on groceries in places like poland, where prices are cheaper. dispute the sanction, the hold threatened. >> the immediate effect of sanctions is to consolidate support for vladimir putin, not only among the population, but crucially among the elites and oligarchs and tycoons around him, who, in a situation where their access to western capital is limited, they are more dependent on the kremlin. >> reporter: more important, vladimir putin holds an in the west. oil and gas accounts for much of the budget. spared in the sport term.
>> the reason is russia supplies about a quarter of europe's gas. half of that travels through ukraine. during the 1980s, moscow get a web of pipelines linking gas fields to households and industries in europe, using ukraine as a transit state. europe today is vulnerable if russia turns up the spigot like it did to ukraine. in october, the european condition brokered a deal, allowing gas to resume flowing. that does not solve the issue of what is going on in eastern ukraine. there's fighting, there could be acts of sab stage, more problems of that -- sabotage, more problems of that nature. they are guarantees against it. >> reporter: on the front lines in poland, restaurant owner says a gas disruption could raise
energy costs and tighten his budget. his pizzeria relies on gas for heating and cooking. poland relies on russia for two-thirds of its natural gas imports. >> it's a big problem, a big problem. in the same moment, the economy will go down. >> in an attempt to fix the problem, polo is taking aggressive action to free itself of russia's energy dominance. poland expect liquified gas or lng terminal to be built by the middle of 2015, helping pollen wean off 10 cubic metres of natural gas that it imports from russia. half that gas will come in by ship. on a polish island, in the baltic sea, the polls are building an enormous plant to
import and process natural gas. construction began three years ago, in part inspired by russia's decision to turn off gas supplies to ukraine in 2006, and 2009, which affected supplies to several e.u. countries. i sat down to discuss it with former polish president and cold war icon. pollen had the experience where the gas from russia, gazprom, flows a little less. year? >> >> translation: just a few more months, years, and we'll be independent of russia. russia will lose out because we and others will not buy. now we are not able to do it. we will in the immediate future. >> reporter: poland's deputy prime minister says the economy depends on sources of energy.
>> translation: the future belongs to number, and a foundation is access to your own source of energy and the cheapest energy. it's needed for residents and business, industries that require energy. >> reporter: that's the problem, energy independence does not come deep. gas deals negotiated with kat kat -- qatar cost a third more because of where it has to be shipped in part. it moves forward, a sign of how seriously some in europe treat the prospect of a gas disruption from moscow. it's part of a war planting seeds of discontent to apple orchards in poland. >> next, the special series, the new cold war continues as i go one on one with the man that helped with soviet communism.
no country in the region is more suspicious of russia's actions in ukraine than poland is. in 1980 a new independent trade union called solidarity lead protests challenging poland's communist regime, by 1990 poland transitioned to democracy and pivoted to the west, joining the european union and n.a.t.o. a quarter century on, a key figure in poland's transformation says his country is on the front line of another cold war. on august 14th, 1980, a young electrician climbed the gate and rallied 17,000 striking workers who barricaded themselves here in the godansk shipyards. two weeks later their demands were met and a solidarity movement was born.
poland's solidarity movement exposed communism's first cracks in europe. and the young electrician was lack wilansa, and he became the charismatic leader, galvanising support, bringing poland's communist government to the negotiating table. 10 years later he wept on to become poland's first popularly elected president and presided over a transition to a post-communist state. but today, as the crisis unfolds in neighbouring ukraine, the polls feel pressure from moscow. i sat with a man in from the beginning. he, again, has his eye on russia. thank you so much for speaking to us. you have been speaking so much about what is happening in ukraine with russia. and poland has been very strong in saying that the west has got
to resist what russia is doing. now, in the world, many team think the worst is over, the worst is behind us. in poland people are worried about russia being expansionist, wanting to do more. what are you thoughts? >> my great grandfather, my grandfather and father said there is no free poland without a free ukraine. that is why the polls are so concerned about the issue, because they know it's dangerous when ukraine is not free. so the question nowadays is how many ruses will we get from a russia that is 30 years behind us? how many problems will we still have? there are no chances for russia to win in this, because you can't nowadays use tank and force to solve problems. >> if we were in solidarity, if we worked together, if we defend
the peace together, the quicker russia will understand it. >> reporter: you said russians are good people who have bad luck with their leaders. putin. >> translation: well, i refer to vladimir putin, among others. russia, when we look at its history has needed an external enemy. they are not able to rule their country without an enemy. these were the people from chechnya, the pols, americans, and now they have the ukranians as their enemy for some internal arrangements. the philosophy of the enemy helps them to keep the country, maintain the ruling of their country. this is their philosophy. it has to be changed. this is not the right time for such philosophy, and we are not able to afford such losses and rule through enemy. russia has to change its enemy. >> reporter: you remember a time
in poland when there is not a free press. russia has that situation. vladimir putin is popular in russia for its actions. it seems the people think he's defending russia and greater russia. do you think if people knew what was going on he would support? >> definitely. the support he gets nowadays is smaller, but russia may like it in a certain way. the additional problem for russia is they used to be a superpower, as the u.s. sr. they lost its position, and the only superpower is the u.s.a. but i refer to weapons, the economy, moral and social and economic issues as well. they are not the leaders, that is why it is hard for russia to be as important as they used to be. so they need success. they need to show their power by threatening. they also have to understand the world.
that it is not borrishness, tanks, but intellect and wisdom are the elements of the contemporary world. >> reporter: do you think that russia's incursion into eastern ukraine and the land that they basically control now in donetsk, and crimea, do you think that is enough for russia. a lot of people have drawn examples comparing it to germany before world war ii, where they went into other countries, including poland, in order to protect the ethnic germans, that's what russians are saying they are doing. >> well i am considering it, it is possible, but i don't have the answer it the questions. whether it has the philosophy and it will be developed. it will be bad, or if it's an idea to threaten others with the external hazards.
he was wrong, because he didn't spect the western world will protect you vain. and now he does not have an idea of how to get away with it the sky is the limit on a thanksgiving edition of "real money" on thursday, i'll take you on an inside tour of the commercial space frontier. not a bad way to spend the holiday weekend, and you skip the crowds and delays. i'll introduce you to billionaires and start-ups, the ate of change shaping the wild west. i'm talking about mining for precious metals on after i said and the moon to -- after i said. forget millions, i'm talking trillions. american companies are racing to stay in the lead of space exploration. thursday, 7:00p.m. eastern, 4:00 p.m. pacific. that's the show, i'm ali velshi, thank you for joining us.